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Marketing Plan – Next 1

Marketing Plan

NEXT Plc


Table of Contents

1.0 Introduction ............................................................................................................................... 3

2.0 Situation Analysis ..................................................................................................................... 3

2.1 PEST Analysis ...................................................................................................................... 3

Political factors ............................................................................................................. 3

Economic factors .......................................................................................................... 4

Social factors ................................................................................................................ 4

Technological factors ................................................................................................... 4

2.2 SWOT Analysis .................................................................................................................... 5

3.0 Marketing Objectives ................................................................................................................ 6

4.0 Consumer and Markets ............................................................................................................. 7

4.1 Segmentation and Targeting ................................................................................................. 7

4.2 Positioning ............................................................................................................................ 7

5.0 Marketing Strategies ................................................................................................................. 9

6.0 Marketing mix ......................................................................................................................... 11

6.1 Price .................................................................................................................................... 12

6.2 Place .................................................................................................................................... 12

6.3 Promotion ............................................................................................................................ 12

7.0 Evaluation and Control ........................................................................................................... 12

8.0 Conclusion .............................................................................................................................. 13

References ..................................................................................................................................... 14


1.0 Introduction

In this marketing plan, the execution of marketing strategy of an existing organization that is

‘NEXT’ will be discussed. In this plan the marketing strategies implementation will be discussed

in detail. The marketing mix and the targeting, segmenting and positioning strategy of NEXT in

China will be elaborated. Through this marketing plan, the aim will be to identify the

implementation of marketing strategies through which the NEXT will aim to expand its market

share and consumer base. Also, the current situation of Chinese apparel industry and NEXT

current market situation in China will also be discussed in detail. The tactics and strategies that

the can employ to achieve the given objective will also be discussed.

2.0 Situation Analysis

NEXT plc is the UK based high street multi channel retailer which provides a wide range of

fashion commodities ranging from clothing to accessories and home products. The company’s

products are designed by styled in house team providing superior quality with a contemporary

fashion edge that gives value for money (NEXT plc, 2014a). The company headquarter is in

Enderby with around more than 540 retail stores in the UK. The company has a NEXT directory

which is a home shopping website and catalogues that has around 4 million active consumers

and has services in over more than 70 countries. By being on the web, the company has been

able to increase its share by more than 150 percent in last ten years. Also the company’s

catalogue provides around 1,400 pages of their collection as compared to 350 pages at the time it

was first launched (NEXT Plc, 2014b). To evaluate the external and internal environment of the

company presently in China, the pestle and SWOT analysis of the company is discussed as

below:

2.1 PEST Analysis

Political factors

The governmental policies and regulation that impact an organization are the political factors. In

Chinese market the political factors included increase tax and regulation relating to transferring


business on other areas (cities or regions). These are the political aspects that affects NEXT as

well in China (Fogel, 2010).

Economic factors

As per Lu (2015), the Chinese apparel market will exceed United States market and will be one

of the largest apparel markets by the year 2019. As per the forecast, there will be an increase of

25 percent in the Chinese apparel market in the annual sales from the year 2014 to 2019. The

apparel market of China is highly competitive with no apparel brand having a market share of

more than 1 percent in China. Also, in China in spite of the overall market, the dollar spending

on the apparel per capital is much lower as compared to many developed economies around the

globe. In the year 2014, spending of individual consumer on apparel was approximate $240,

even though spending on apparel accounted for a big share in the Chinese household income (i.e.

around 10 percent). In spite of slower growth rate in the past few years, China’s apparel market

has a strong position and by the year 2017 will be able to take the United States to become the

world’s largest apparel market (PwC, 2015).

Social factors

Presently, there has been substantial increased in the fast fashion trends, where Asian consumers

for the trendy brands that are multiplying. With the increase in income and aspiration, young and

affordable brands have been trying to fill in consumer demand of remaining chic and trendy (Li,

Li, and Kambele, 2012).

Technological factors

The apparel industry is changing due to rapid technological changes in production process and

manufacturing methods. Also, reaching to consumer is becoming easy due to technological

advances such as the widespread use of social media (Shiau, and Luo, 2012).


2.2 SWOT Analysis

Strengths

Following are the strengths of the company as

mentioned by Next Plc (2014a):

- Superior customer service in terms of

being active in social media.

- NEXT directory website which increase

the percentage of orders from home by

30 percent to 45 percent.

- NEXT day delivery service which gives

the company strength compared to

other retailers.

- The company can enhance their cutting

edge technology by outsourcing it to be

more innovative, by considering

partnerships with online start-ups like

Net-a-Porter.

- The company can also improve their

delivery services by looking for a more

reliable and credible third party

delivery source.

Weaknesses

Following are the weaknesses of the company

as mentioned by Next Plc (2014b):

- The company relies on third party for

their delivery services, which causes

failure or error.

- The company in not keeping up with

the competitors in terms of technology

and customer knowledge.

Opportunities

Following are the opportunities available for

the company as given by Rumsey and Saunter

(2014):

- The company can enhance their cutting

edge technology by outsourcing it to be

Threats

Following are the threats present in the

industry as mentioned by Coen (2014):

- The high end retailer competitors which

are using cutting edge technology to

better reach to consumers.


more innovative, by considering

partnerships with online start-ups like

Net-a-Porter.

- The company can also improve their

delivery services by looking for a more

reliable and credible third party

delivery source.

- Low consumer loyalty due to

competitors offering more or less likely

offering in apparel (men and women

and footwear.

3.0 Marketing Objectives

The main objective of marketing plan is to helping the company in attaining their short term

objectives thus bringing the company closer to achieving their long term performance goals

(Wood, 2013) Therefore, the objective of making a new strategy plan for NEXT plc for the short

term is to address the changing needs of consumers and changing lifestyles, technology and

social trends, which will increase the brand image and brand awareness of the company.

Presently, NEXT plc have a diversification strategy as their growth strategy because of

continuous opening of new stores. The company also diversifies into new products like home

and gardens in their foreign market as well (Davey, 2014). The purpose of this marketing plan is

to develop a short term (1 to 3 years) marketing plan for NEXT in China to enhance the brand

affiliation and market share and to become the consumer destination for apparel shopping. The

three main objectives of this marketing plan are as follows:

- To increase the market share and sales of NEXT within coming one to three years

through the use of innovative marketing strategies.

- To increase online and physical stores brand affiliation within the further six months.

- To increase the amount of customers i.e. at least 10% in NEXT Directory for

international online sales in approximately next one year.


4.0 Consumer and Markets

4.1 Segmentation and Targeting

In segmenting, targeting and positioning strategies, companies firstly decide the types of

customer that exists. Secondly, it decides on the customers that they want to serve and lastly

communicating the company’s products and services to chosen market segments (Hassan and

Craft, 2012). Segmentation is involved grouping consumer in a similar segment that may have

similar characteristics and may respond to marketing actions in a similar way. The various

segments in a market are demographics, psychographics and behavioural. Once, the

segmentation is done the NEXT step is targeting. Developing specific marketing strategies for

the segment market is very important (Boone, and Kurtz, 2013).

The NEXT demographic segmentation includes both genders i.e. male and female who are

young professionals within the age of 20 and 48. The consumer incomes segment markets of

NEXT are the consumers with the income middle class consumers. However to achieve the

stated marketing objectives, the company has to segment consumers from the age of 15 and

above. The young generation are becoming more fashion savvy and likes to keep up the fashion

trend and will prove to be a profitable segment for the company. Also, as related to the

psychographic segmentation of NEXT’s consumer are working and middle class with busy

lifestyle with a mind set of value for money (Hood, Clarke, and Clarke, 2015). Also, the NEXT

should aim to target consumers are trend setters and innovators rather than late majority or

laggards in fashion. Due to the high quality of NEXT products the behaviour segmentation of

their customers are independent purchasers. As per the VALS 2 lifestyle model, the consumers

of NEXT are believers and strivers. This is because of the consumer being conservative and

aware of the quality that they are purchasing (Valentine, and Powers, 2013). In order to achieve

the given marketing objectives, NEXT should aim to target the consumers who are thinkers and

achievers who are high on innovation and resources.

4.2 Positioning

Positioning is related to creating a brand image of the product in the mind of consumers (Singh,

Kalafatis, Blankson and Passera, 2012). Companies use positioning map to assist them create a


marketing positioning strategy for their offerings. The positioning map is based on the perception

of the consumers that is why it is also called positioning map. The positioning map helps

company in identifying where they are positioned presently and where the company wants to be

positioned in the future (Lee, Yang, Chen, Wang, and Sun, 2015). The positioning map of NEXT

is shown in the below figure with reference to the company current competitors.

Figure 1: Current Perceptual Map of NEXT plc

(Source: Iskandar, n.d.).

At present, NEXT is positioned as company with affordable pricing and with moderately high

fashion trend and modernity in their products. The main competitors of NEXT are Zara and

Asos. Both the brands are high on fashion with little variability in term of its pricing strategy.

With this Marketing plan, the objective of the company is to be positioned as a brand that is

more premium and high in quality. The new positioning map of NEXT plc is shown in the below

figure.


Figure 2: Planned Perceptual Map of NEXT Plc

(Source: Author’s Own).

5.0 Marketing Strategies

The order to realize the marketing objective developed in this marketing plan, there are different

marketing strategies that the company need to adopt to meet the consumer changing demands,

lifestyle and purchasing patterns. One of the marketing strategies that the NEXT can adopt in

their in store retail outlets is the use of virtual fitting room. Virtual fitting rooms will help in

enhancing the customers shopping experience. Topshop, one of the top clothing retailers is

already using virtual fitting room in some of their retail outlets. This room will permit the

consumer to take a clothing piece of the rack without trying it on. In order to select one clothing

item, the consumer has to use hand gestures to manger the user interface. Also, with the

advancement in technology, the virtual fitting room can be applied in e-commerce as well. Thus

NEXT plc can use the virtual fitting room both online and offline.


Another marketing strategy that NEXT plc can use is to expand channels by becoming

OmniChannel retailing. By ominChannel it means that customers can make the purchasing using

different applications and locations. With consumers being able to fulfil their purchasing needs,

consumer will be more satisfied with the service and will be more loyal towards the brand. Also,


the Chinese consumers are moving more towards online buying and buying through different

applications rather than in store shopping. Also, there has been a substantial rise in consumer

buying apparel, accessories and footwear online as shown in the below figure 3.

Figure 3: Product Categories Purchased By Consumer

(Source: KPMG, 2014).

Through using all retail channels, NEXT will be able to increase their brand awareness and

product portfolio through having an online presence with increase in online sales. This multi

channel presence of the brand will also increase the brand in store sales as well. Also, the brand

awareness that will be developed in consumer through the company’s website will positively

affect the company in increasing through all channels and not just through online channel. While

adopting this strategy, the company need to ensure that its overall inventory is present in all

channels to increase customer satisfaction level.

6.0 Marketing mix

The marketing mix consists of four marketing P’s that are explained below with reference to the

above given marketing strategies that the company may employ to achieve the marketing

objectives. The marketing mix elements (price, place and promotion) for NEXT plc are

discussed below:


6.1 Price

The price of the virtual fitting room and online stores and the NEXT mobile application are all

accessible to consumer free of cost. The consumer can access the online store through their

laptop, iPads, tablet, personal computer and smart phones. Also the consumer will be able to

download the NEXT application from their Apple store or Google stores in case of android smart

phones. Also, the in store virtual fitting rooms will be free of cost for all consumers which the

basic aim of increasing consumer experience and satisfaction level.

6.2 Place

The place of virtual fitting rooms will be in the retail outlets of the NEXT stores. Also, the place

or physical evidence of NEXT mobile application will be in the consumers’ smart phones, which

the consumer can download from their application stores.

6.3 Promotion

Some of the promotion strategies that NEXT plc can use to promote the given market strategies

are through newsletter and personal emails and mobile messaging to their consumers. Also, the

company can also used social media platforms like Face Book, Twitter and Instagram for

promoting their chosen marketing strategies. Also, for the launch of these marketing strategies

the company can also use the Personal Relation (PR) promotion strategies.

7.0 Evaluation and Control

The success of the marketing strategy implementation can be evaluated by assessing how many

visit and downloads the virtual fitting room and the NEXT mobile application are done by

consumers in the given time period. The brand affiliation of consumer can assessed by knowing

how many consumers are aware of the company’s new technology and how many consumers are

actually using these technologies for the purpose of shopping NEXT products. Also, the rating

and satisfaction rate of consumers from these new technological advances can also be used to

evaluate the effectiveness of proposed marketing strategies. Also, the sale revenue will be the

biggest indicator of the effectiveness of the company’s marketing strategies. Also, the


assessment of sales increase through online and in store medium is also an indicator of effective

implementation of the proposed marketing strategies. From the proposed marketing strategies it

shows that these strategies are to enhance brand visibility for the consumer and will assist the

company in driving towards innovative technologies and being consumer driven. Also, the

proposed marketing strategies will enhance the brand affiliation and brand awareness

8.0 Conclusion

With the understanding of NEXT current situation by evaluating the company’s strength and

weakness with the threats and opportunities and the assessment of company’s external

environment, the above marketing plan is developed. The marketing objective of this marketing

plan is to increase the market share and sales through the use of innovative marketing strategies.

The marketing strategies in order to achieve those objective are the development of virtual fitting

room to increase customer experience and satisfaction and to expand the retail channels of the

company so that is easy accessible to consumers through all mediums. In the end of the

marketing plan, the evaluation and control of the proposed marketing strategies are also

discussed.


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